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LONDON (Alliance News) - Infrastructure India PLC on Friday said it agreed to sell its interest in Western MP Infrastructure & Toll Roads Private Ltd, the operator of a 125 kilometre toll road in the central Indian state of Madhya Pradesh.
In a statement, the AIM-listed infrastructure fund said it agreed to sell its 26% stake in WMP for INR2.03 billion, equivalent to about GBP21.6 million.
The investment was sold at a 13% discount to the GBP25.0 million value ascribed to it in Infrastructure India's interim accounts for the period ended September 30.
The proceeds will provide Infrastructure India with additional working capital.
Distribution Logistics Infrastructure Ltd, which is Infrastructure India's largest portfolio asset, has now received regulatory approval for its Nagpur terminal to commence export-import operations.
Infrastructure India, which owns 99.9% of DLI, said that enables DLI to begin and ramp-up operations through its own customs bonded area at Nagpur. Crucially, Infrastructure India said, DLI now has the ability to operate the integrated logistics park to its full potential.
"At Palwal, key infrastructure relating to Exim and domestic operations is now complete. At Bangalore, infrastructure for both Exim and domestic operations is complete and DLI has received in principle agreement from the Indian Railways for the rail siding at its ILP, which is already under construction," Infrastructure India said.
"In November 2015, torrential rainfall and local flooding in Chennai disrupted construction at DLI's terminal. The floodwaters took several months to recede and DLI management believe it prudent to revise the layout of the site. The reconfiguration of the container freight station and Free Trade Warehousing Zone is expected to lead to commissioning of the facility late this calendar year," Infrastructure India said.
"While market conditions in the industry continue to be soft, with tight margins in domestic rail transportation and no rebound in Exim volumes, the board continues to be optimistic in DLI's long term potential and the strength of its business plan," Infrastructure India said.
Shares in Infrastructure India were untraded Friday morning. They last closed at 14.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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